Howard tips tax cuts

CANBERRA - The Government wanted to offer more tax cuts but would not send the nation's budget into deficit, Prime Minister John Howard said yesterday.

"I would like to see further reductions. I would like to see a situation where the point at which the top rate of tax comes in continues to be lifted," he said.

The Government cut income tax in its May budget by A$14.7 billion ($16.11 billion) over four years for people earning over A$52,000 a year.

The threshold where the top tax rate of A47c in the dollar cuts in will rise to A$80,000 from July from A$70,000. "We're not going into deficit. We have certain commitments," Howard said.

"I'm in favour of cutting tax where I can, but I also believe that we as a nation have got to invest heavily in defence ... And as a nation with an ageing population, we'll certainly have to continue to maintain a very strong commitment for health services and aged care."

- REUTERS